(Corrects misspelling of ANZ in third last paragraph)
* Singapore May output -2.5 pct y/y vs +2.6 pct f'cast
* Singapore May output -5.7 pct m/m vs -0.2 pct f'cast
* Weak pharmaceuticals, electronics hurt output
SINGAPORE, June 26 Singapore's May manufacturing
output contracted at its worst annual pace in 11 months,
government data showed, underscoring recent weakness in exports
that pointed to feeble external demand.
The disappointing output data comes after Singapore's
exports unexpectedly fell in May on weak shipments of
electronics and pharmaceuticals to its key markets.
"It will eventually benefit (from a recovery in major
economies)," said Francis Tan, an economist for United Overseas
Bank. However, "I am not so sure how many months it would take."
Industrial output in May fell 2.5 percent from a year
earlier, Singapore Economic Development Board said in a
statement on Thursday.
That was the largest slide since a 4.7 percent loss in June
last year and defied market forecasts of a 2.6 percent rise in a
On a seasonally adjusted month-on-month basis, factory
output in May slid 5.7 percent, far worse than a forecast 0.2
Weakness in Singapore's factory output of pharmaceuticals
and electronics contributed to the overall decline in May,
reflecting recent softness in external demand.
Exports to major economies, especially Europe, have been
weak in recent months, hobbling the economic recovery in the
Pharmaceuticals output in May fell 11.6 percent from a year
earlier after growing 26.7 percent in April. Electronics
production also slid 7.5 percent from a year ago with
semiconductor output down 6.4 percent.
"Without pharma offsetting, we will likely see the
electronics drag the overall industrial production to fall,"
said Daniel Wilson, an economist for ANZ in Singapore.
Output of electronics in April suffered a 7.6 percent loss
from a year earlier.
In 2013, the manufacturing sector made up roughly 19 percent
of Singapore's economy. Electronics accounts for 30 percent of
total manufacturing activity, while biomedical manufacturing
makes up 20 percent.
(Reporting by Jongwoo Cheon and Rujun Shen; Editing by Shri